Agreements and Engagements Financial Statement 2011

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements December 31, 2011 and 2010 and For the Years then Ended - 124 - Gross amount Net amount Rp 000,000 Rp 000,000 At fair value through profit and loss Short-term investment - securities - shares and warrants 1,033,109 1,033,109 Short-term investment - securities - bonds 53,240 53,240 Short-term investment - securities - units of mutual fund 3,128,024 3,128,024 Segregated funds net assets unit link - shares 36,072 36,072 Segregated funds net assets unit link - units of mutual fund 5,929,443 5,929,443 Segregated funds net assets sharia - units of mutual fund 40,413 40,413 Held to maturity Short-term investment - securities - bonds 182,159 182,159 Short-term investment - securities - credit link note 63,070 63,070 Short-term investment - securities - export bill receivables 322,030 322,030 Segregated funds net assets unit link - bonds 34,149 34,149 Segregated funds net assets sharia - bonds 14,085 14,085 Available for sale Short term investment - securities - shares 1,190,672 1,190,672 Loans and receivables Cash and cash equivalents 913,026 913,026 Securitiies purchased under agreements to resell 107,141 107,141 Short-term investment - placement with other banks 706,189 706,189 Short-term investment - time deposits 33,543 33,543 Net investment in finance lease 167,583 163,869 Consumer financing receivables 377,499 376,961 Factoring receivables 192,738 187,558 Segregated funds net assets unit link - time deposits 984,135 984,135 Segregated funds net assets unit link - cash in banks 35,927 35,927 Segregated funds net assets unit link - investment receivables 2,271 2,271 Segregated funds net assets sharia - time deposits 3,000 3,000 Segregated funds net assets sharia - cash in banks 4,599 4,599 Segregated funds net assets sharia - investment receivables 504 504 Securities agent receivables 165,481 165,481 Other accounts receivable - net 543,103 542,356 Loans - net 7,011,795 6,934,157 Investment in shares of stock - AFS 337,182 337,182 Other assets 22,496 22,496 Total financial assets 23,634,678 23,546,861 December 31, 2010 Market Risk Market risk is the fair value or future contractual cash flows of a financial instrument held by the Group will be affected due to changes in market variables such as interest rates, exchange rates, including derivatives of both risks risks of derivative instruments. a. Interest rate risk Interest rate risk is the potential loss arising from movements in market interest rates as opposed to the position or transaction of the Group. To measure interest rate risk, the Group generally uses the analysis of net interest income net interest margin and the difference spread interest rates. In addition, the Group also conduct a study analysis report due maturity gap analysis and static interest rate gap analysis to provide a static picture on the statement of financial position position on a particular date based on the characteristics of back interest rate determination date repricing time or the remaining time until due dates of productive assets and savings remaining maturity. PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements December 31, 2011 and 2010 and For the Years then Ended - 125 - The table below shows consolidated statements of financial position exposures related to interest rate risk: Average Carrying Average Carrying effective interest rate Amount effective interest rate Amount Rp 000,000 Rp 000,000 Assets Cash and cash equivalents 1.50 8,004,010 1.50 603,801 Short-term investment - time deposits 7.75 16,991 7.24 33,543 Short-term investment - placement with other banks 2.98 561,609 0.83 616,189 Short-term investment - securities - bonds 10.44 1,939,390 10.44 1,374,014 Short-term investment - securities - credit link note 6.75 45,338 8.05 63,070 Short-term investment - securities - BI Intervention 5.96 1,347,412 6.68 88,473 Short-term investment - securities - SBI 5.90 96,972 - - Short-term investment - securities - export bill receivables 2.40 824,957 1.51 322,030 Securities purchased under agreements to resell 21.00 39,627 16.00 107,141 Net investment in finance lease 16.50 167,924 17.50 223,780 Factoring receivables 14.50 438,523 39.50 198,833 Consumer financing receivables 18.00 864,497 14.50 531,842 Segregated funds in net assets unit link - cash in banks 1.50 39,859 1.50 35,927 Segregated funds in net assets unit link - time deposits - - 5.06 984,135 Segregated funds in net assets unit link - bonds 12.25 43,831 12.25 44,471 Loans 10.11 9,598,414 14.13 6,864,833 Securities agent receivables 18.00 34,887 18.00 40,288 Other receivables 11.00 625,201 11.00 439,140 Liabilities Deposits and deposits from other banks 4.10 13,792,068 4.71 9,334,786 Securities sold under agreements to repurchase 20.00 39,125 20.00 32,069 Loan received 13.00 930,904 13.00 512,265 2010 2011 b. Foreign currency risk Foreign currency risk is the risk that the carrying value or future cash flows of a financial instrument will fluctuate due to changes in currency exchange rate of Rupiah against foreign currencies. The Group handle this risk by always keeping the balance in assets and liabilities denominated in foreign currencies with the matching ratio at least 100 and is guided by regulations. The following table shows the Group’s assets and liabilities in foreign currencies: 2011 2010 Equivalent in Equivalent in Equivalent in Equivalent in US Rp 000,000 US Rp 000,000 Assets Cash and cash equivalents 60,828,216 551,566 60,041,440 540,940 Short term investments 201,095,961 1,823,476 215,277,103 1,938,162 Factoring receivables 5,610,155 50,873 5,111,489 45,957 Segregated funds in net assets - unit link 52,773,126 478,546 65,331,113 587,391 Premium and reinsurance receivables 9,092,004 82,446 4,137,091 37,197 Loans 225,627,612 2,045,878 88,467,370 797,091 Other accounts receivable 5,698,613 51,675 6,552,016 58,943 Other assets 236,368 2,143 144,957 1,303 Total assets 560,962,055 5,086,603 445,062,579 4,006,984